Product Family Selection

Overview of Module
One of the most dangerous things an organization can do when first learning about value stream
mapping is to attempt to solve all of their problems with a single value stream mapping exercise.
Some may refer to this as attempting the boil the ocean. This type of behavior typically leads to
failure.
To help avoid these issues lean practitioners often utilize specific tools and techniques that lead
them to the best candidate(s) for value stream mapping. Specifically, the two main tools are
Product Quantity (PQ) and Product Routing (PR) Analysis/Matrix.
The main premise behind a PQ matrix is that it helps guide us to the product families with the
highest volume. By targeting these higher volume product families were better able to maximize
our return on investment.
In some cases the results of a PQ analysis do not deliver a decisive message as to which product
family to map first. In this situation a Product Routing (PR) Analysis/Matrix can become extremely
effective.
The PR Matrix is a powerful tool that allows us to better understand which product families share
common processing steps. This is to say that if two different product families share the same or
very similar processing steps we would be able to map both of them with one value stream
mapping exercise.
Finally, a popular choice of lean practitioners is to combine both a PQ and PR Analysis which some
refer to as a PQPR analysis.

Key Terms

Product Quantity (PQ) Analysis: Used to identify key product families by the
examination of both product volume (revenue and units shipped).
Product Routing (PR) Analysis: Used to identify key product families by the
examination of the production routings of all products.
PQPR Analysis: The combination of both Product Quantity (PQ) and Product Routing
(PR) Analysis.
Pareto Principle: The Pareto law states that a small number of the causes are
responsible for a large percentage of the effects. This is often referred to as the 80/20 rule.

2. Product Family Selection

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